Gaming Industry

Introduction-

Gaming has always been into the blood of Indians. They just love playing games..whether it be on the fields or off the fields

The expansion of this love in the dimensions of Computer gaming has surely not gone unnoticed. Video Games have been a popular pastime across the world since the 1970s.When seen in reference to the present day scenario, the virtual world of Gaming has become an unavoidable dimension of its own, leaving no stone unturned in gaining prominence in India like never before.

Gaming Industry -A brief overviewGaming is developing into one of the key growth segments in

India with the country having majority of its population as youth.

Gaming industry in India is all set to increase by 32% by 2014.

Currently the industry is valued at Rs.10 billion and is expected to reach Rs 38 billion by 2015.

The Indian Gaming industry is one of the fastest growing industries in the country today. Highly skilled manpower and dramatic cost-effectiveness have made India a sought after hub of animation industry.

Market Size-

Accelerating factors in the Growth

High percentage of young population.

Steadily rising disposable incomes.

Significant rise in penetration of personal computers and mobile phones in everyday life.

Introduction of new technologies in the gaming circuit combined with creativity and innovations.

Proliferation of game developers.

Market Segmentation

The gaming industry in India can be categorized into three segments-

Mobile Gaming

Console Gaming

PC & Online Gaming

Mobile Gaming…is one of the most lucrative markets with a bright future valued

at USD 32.5 million.

A steady rise in the number of wireless subscribers along with increasing usage of data enabled handsets is providing a strong base for the gaming industry.

It is projected to witness a CAGR of 50.7 percent and the market is expected to reach USD 574 million in 2016.

It is expected to experience the largest growth with its share expanding from 15 per cent in 2010 to 20 % in 2015.

Console Gaming…contributes the largest share of gaming revenues both

globally as well as in India.

It accounts for 62 percent of the market share of the total gaming revenues thus reaching USD 88.54 million in 2009.

It is expected to grow at a CAGR of 18.8 percent and reach USD 297 million in 2016.

However, a drop is expected in market share by 2016, as the total market share for mobile gaming is expected to increase in the next 5 years.

PC & Online Gaming…Presently, rise in the usage of social networking and proper

marketing of online gaming has made the concept of social gaming immensely popular.

In India, it has reached USD 21.68 million in 2009, 17 percent higher than that of 2008.

This segment is expected to have a whopping CAGR of 37.8 percent during 2009-2014; to touch USD 110 million in 2014.

Indian gaming companies like Zapak.com and Game on India have launched a chain of gaming cafes, thereby attracting interest of the young population in India.

Revenue Generation  The Indian gaming sector achieved revenues of INR 13 billion in line with last year’s forecasts.

The above figure illustrates the amt of revenue generated from each of the three prime segments of the Gaming industry of India.

MAJOR PLAYERS –

Gaming reach cycle-

Game developer

Game publisher

Advertisers

Hardware & component

manufacturers

Public Access

Key Challenges

Mobile Gaming Delay in Proposed Technology Advancements

Console Gaming

High customs duties and indirect taxes

Release windows for popular games do not coincide with global launched

Lack of Localized Content

PC Gaming Piracy

Price sensitivity

Regulatory Hurdles

Future Outlook of Gaming IndustryAs offshore delivery model matures the cumulative effect of improved

skill sets, quality of development, on time delivery combined with cost advantage and scale can lead to expansive growth.

Demand for domestic IP is expected to grow as animation and gaming seeps into India culture with local themes, better promotion and wider distribution.

Falling costs of gaming hardware and software will spur uptake in the domestic market and reduction in duties can significantly accelerate the market.

The entry of global majors and setting up of captive centers are significant milestones and as the momentum picks up this will transform the animation and gaming landscape.

SCOPE The potential market for games has emerged in India.

It is forecasted that the gaming industry will generate

great opportunities for game developers over the next two years.

The gaming industry has grown its presence over various platforms – mobile, console, PC, online gaming and would continue to set new landmarks in innovation, creativity and vision.

Conclusion The purpose of the presentation is to describe the present

situation with regard to the ways in which the gaming industry has touched a chord with our lives. Once the gaming industry in India completely develops, it will grow to be one of the best markets in the world. In short, the gaming has only just begun…